Sagemcom, France, starts production in Manaus

The Sagemcom, French company that produces equipment for broadband connection, such as modems, routers and digital TV converters, started the production of its equipment in the country. The company has installed a factory in Manaus, last year, under a project budgeted at $ 7.3 million, according to data from the Superintendency of the Manaus free zone (Suframa). The expectation is that the unit produces 2.5 million units this year, between modems and routers.
The factory has about 200 employees. In the world, the Sagemcom gathers approximately 6 thousand employees, with a revenue of approximately € 1.4 billion. The company is controlled by the Carlyle Group, participation in companies, In 2011, the Fund acquired 70% of the shares of the company, for € 5.4 billion. The remaining 30% of the shares are in the hands of officials of Sagemcom in France.
Stéphane Boisserie, Director-General of the Sagemcom for Latin America, said the company ended last year with sales of 2 million units in Brazil. For this year, the estimate is an increase of 25%. "Brazil has a strong growth in the areas of broadband and TV. The country has become very interesting for the overall operation of the Sagemcom, "he said.
In addition to the expansion potential of the Brazilian market, the decision to start local production is due to the opportunity to place on the market products with the most competitive prices, thanks to tax benefits obtained with the basic productive process (PPB), granting tax exemption to products made in the country.
"The prospects are positive for this year and 2014, because of the football World Cup," said Boisserie. The expectation is that the market Executive to keep sales growing, as the number of Brazilians with internet access grows in the country. The expectation of Boisserie for next year is sales of 3 million units.
According to the Brazilian Association of telecommunications (Telebrasil), the Brazilian broadband market grew 37% in May compared to the same period last year, totaling 103 million hits. The number of Brazilians with internet access increased 12.9% in the first quarter, coming in at 102.3 million people, according to Ibope Media.
The growth of the population with internet access has spurred many companies to invest in the production of equipment for connectivity, such as converters, modems and routers. In March, the D-Link announced that Taiwanese plan to install a factory in the country. At the end of last year, the American began local manufacturing of Cisco routers.
"The network equipment market is heated, especially the simplest equipment segment and lower price," said John Paul Bruder, an analyst with consultancy IDC. According to Bruder, low cost routers-one of the foci of the Sagemcom-moved $ 52.6 million in the country in 2012. The projection is that this market reach $ 76,41 million by 2016. (CB)